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Supply Chain Strategic Alliances Partner Selection for Rizhao Port

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Supply Chain Strategic Alliances Partner Selection for Rizhao Port International Journal of Scientific and Research Publications, Volume 4, Issue 11, November 2014 1 ISSN 2250-3153 Supply Chain Strategic Alliances Partner Selection for Rizhao Port Libin Guo School of Management, Qufu Normal University,Rizhao276826,China Abstract- Under the background of port supply chain strategic alliances,we clarify the current situation of Rizhao Port by SWOT analysis and find out the ST strategy for it, furthermore, we screen out the optimal cooperation partner for Rizhao Port under different alliance forms range from horizontal integration and vertical integration to the blended dynamic logistics alliance. Index Terms- Port Supply Chain; the SWOT Analysis; RiZhao Port; Strategical alliance I. INTRODUCTION ort supply chain, a main constituent of port logistics, includes the levels such as informationization, automation and networking, P and emphasizes the modern management of material transportation chain of each link and the extension of comprehensive services.Meanwhile, due to the connection between ports and suppliers and consumers all over the world through shippping companies and land forwarding agents, a port supply chain integrating many means1 of transportation and types of logistics is formed, and it becomes a relatively best main part and link for the coordinated management of supply chain. Therefore, we can start from the analysis of the SWOT of Rizhao port supply chain, and find out the cooperative partners suitable for the strategical alliance of Rizhao port supply chain among different types of alliance. II. THE SWOT ANALYSIS OF RIZHAO PORT SUPPLY CHAIN The SWOT analysis, a commonly used method of strategic competition, is based on analyzing the internal conditions of enterprises itself, and finds out the strengths, weaknesses and core competence. S stands for strengths, W for weaknesses, O for opportunities, and T for threats. Among them, S and W are internal factors, while O and T are external ones, as shows in Chart one. According to the whole concept of enterprise competition strategy, strategy should be an organic combination of “can-do”(namely the strengths and weaknesses of an organization) and “may-do”(namely the opportunities and threats arising from the environment). Helpful Harmful to achieving the objective to achieving the objective Strengths Weakness ttributesof organization the Intenal origin Intenal A Opportunities Threats enviroment ttributesof the Extenal origin Extenal A Chart one: swot analysis Fund project：shandong province college the project research of Humanities and Social Sciences（J12WF10），qufu nomal university youth foundation item（XJ201117） www.ijsrp.org International Journal of Scientific and Research Publications, Volume 4, Issue 11, November 2014 2 ISSN 2250-3153 III. THE STRENGTHS OF RIZHAO PORT Geographical advantages Rizhao Port has evident geographical advantages, and abounds in gifts of nature. The Port is located in the middle part of China’s coastline, with the Yellow Sea on its east, adjacent to Qingdao Port in the north and Lianyungang Port in the south, and with Japan, South Korea and North Korea on the other side of the sea. The port district boasts wide bays, deep waters, vast hinterland, a mild climate, and is an ice-free and a non-silting port, which make it a suitable place for building a large-scale deep water berth about 200～300 thousand-ton, especially for industrial layout in the port areas with large inflows and outflows. Climate conditions Rizhao Port enjoys south wind all the year round, of which the frequency rate is 10.95％. And the frequency rate of wind of more than 6 scale for the whole year is 0.51％. Typhoon has a minimum influence on the port because there is no typhoon landing here. Its annual precipitation on average is 955mm. Foggy days mostly occur between February and July, accounting for 90％ of its yearly foggy days, and the number of annual foggy days with visibility less than 1km is on average about 11.4 days. The annual average temperature is 12.5℃, with the highest being 37.5℃, and the lowest —14.5℃. The sea surface is ice-free all the year round, and so it is with the port. Infrastructure capabilities Rizhao Port, now having five port districts: Donggang District, Zhonggang District, Xigang District, Lanshan District and Lanshan Beigang District, has 28 production berths, and the throughput capabilities of berths are 41320 thousand tons. Among them, Donggang District and Xigang District have 19 production berths, among which two berths are used for 125 thousand-ton coal, and there are 11 berths of a tonnage of over 10 thousand; Lanshan District and Lanshan Beigang District have 7 production berths, among which there are 4 berths of a tonnage of over 10thousand; Xigang District has 2 production berths of a tonnage of 10 thousand. Donggang District and Zhonggang District: the throughput capabilities are 31580 thousand tons. Coal dock: 2 berths of 125 thousand-ton. There are 9 berths(except the coal dock) more than 10000t, among which Number 4 berth is Daewoo bulk cement berth. There are 8 berths less than 10000t, which are mainly used for the acceptance of small and medium vessels, and the acceptance of break bulk cargoes and general cargoes. Xigang District: a newly-built port district during the Period of ninth-five year plan, with 1wood dock of a tonnage of 40 thousand and 1 universal bulk, and the throughput capability of 1340 thousand tons. Lanshan District and Lanshan Beigang District: now having 7 production berths, 4 berths of a tonnage of more than 10 thousand, and the throughput capability of 4800 thousand tons. Collecting and distributing ability The collecting and distributing of Rizhao Port are convenient and efficient. Yanshi Railway and Pinglan Railway connecting Rizhao Port with other places run westwards through Xinxiang, Houma, and Xi’an before they end in Alashankou of Xinjiang Autonomous Region. They are parallel to Lianyungang-Lanzhou Railway, and intersect with Beijing-Shanghai Railway, Beijing- Jiulong Railway, Beijing-Guangzhou Railway, Jiaozuo-Zhicheng Railway, and Datong-Puzhou Railway, which forms a railway network that connects Rizhao Port with the vast regions of East China, Central China, and Northwest China. The completion of Jiaozhou-Xinyi Railway, and the construction of Dongdu-Pingyi Railway, Zaozhuang-Linyi Railway and the railways in south-central Shanxi Province will further enhance the collecting and distributing ability of Rizhao Port. Port highway is connected with Rizhao-Dongming Highway and Lianyungang-Huoerguosi Highway, and intersects with Tongjiang-Sanya Highway, Beijing-Shanghai Highway and Beijing-Fuzhou Highway. Four National Highway trunk lines connecting Rizhao Port with other places have access to all parts of the country, forming a highway transport network which extends in all directions. Two railway arteries run through Rizhao port district, and they are Rizhao-Lankao Highway and Shenyang-Haikou Highway, and new Eurasian Continental Bridge and the south-central railway in Shanxi Province under construction. Rizhao-Yizheng Pipeline, Rizhao-Dongming Pipeline and Rizhao-Puyang Pipeline under construction run through Rizhao port district. Rizhao now has opened eight aviation agencies, which allows doing passenger and cargo business at any time. Round trip tickets from Qingdao to all parts of the country, from Qindao to South Korea, and to Hong Kong, tickets from Jinan to all parts of the country, and tickets from Lianyungang to all parts of the country can be booked; air cargo transportation business from Qingdao to all parts of China can also be done. The 168km between Rizhao and Qingdao Airport, and the 120km between Rizhao and Lianyungang Airport are both within two-hour ride. The sea routes of Rizhao Port can reach any port in the world, and Rizhao Port has been open to navigation with over 100 countries and regions in the world. Rizhao Port has 3 modernized container berths, which is at present one of container docks with deepest draft and biggest container yard among coastal ports all over China. Rizhao Port, with its annual throughput capability amounting to 5000 thousand tons, is China’s biggest transshipment port, boasting 2 specialized bulk cement berths which can berth vessels of a tonnage of 40 thousand and world-class cargo handling technology. Rizhao Port, at present, has China’s most advanced and specialized wood chip and timber berths and supporting equipment. Its storage capability amounts to 500 thousand cubic meters. Its annual import volume of timber reaches almost 1000 thousand cubic meters, and more than 1000 thousand tons of wood chips are imported annually, which make Rizhao Port the biggest wood chip and timber distributing center in the north of Yangtze River. Rizhao Port has all kinds of advanced rolled steel loading and unloading facilities and devices, which can satisfy the handling, storage and transportation of all kinds of rolled steels such as billet steel, steel plate, steel wire rod, steel pipes, and section steel. Rizhao Port has launched international passenger-cargo liner, which is twice weekly, from Rizhao to Pyongtaek of South Korea; Rizhao Port has first-class www.ijsrp.org International Journal of Scientific and Research Publications, Volume 4, Issue 11, November 2014 3 ISSN 2250-3153 international ship hall, with its reception capability hitting over 1000 passengers at one time, and annual passenger capability reaching 150 thousand persons. Economic hinterland The economic hinterland of Rizhao Port is vast. Rizhao Port adjoins to Southern Shandong energy base, which, having many kinds of mineral resources, especially building material resources famous for their superiority in quality and abundance in quantity, is an important building material base in East China. The direct economic hinterland of Rizhao Port covers regions like the south of Shandong Province, the north of Henan Province, the south of Hebei Province, the south of Shanxi Province and Guangzhong Region in Shaanxi Province, with a population of more than 80 million and an area of 180 thousand square kilometers.
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